A spot Ethereum ETF is an exchange-traded fund that holds actual ether and tracks its market price, allowing investors to gain regulated exposure to ETH through ordinary brokerage accounts without self-custody. Unlike futures-based products, it backs each share with the underlying asset held by a custodian. Its approval by securities regulators marked a significant step in integrating a major crypto asset into traditional capital markets.
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- Each share is backed by ether held with a qualified custodian, distinguishing it from futures-based vehicles and tying its value directly to the underlying Cryptocurrency. Its authorisation under Securities Regulation required satisfying surveillance-sharing and custody requirements, and represented a milestone in bringing a second major crypto asset into mainstream regulated investment products.